“But things aren’t necessarily as clear when it comes to choosing specific companies to buy stock in.” 

The methodology I use to locate stocks for serious investment consideration is to first identify those sectors of the marketplace which have current strong fundamentals, or will have improving fundamentals based on anticipated economic and political conditions both nationally and/or internationally. 

Once sectors are identified, the next step is to perform chart ratio analysis in order to identify which sectors have the highest probability of positive return in conjunction with the lowest probability of risk.  This process of analysis is used in order to meet the primary goal of investing – maximizing profits / minimizing risks. 

Once you have correctly identified several of the market sectors (diversification) which you should focus your attention on, the next step in the evaluation process is to further identify which particular investment alternatives within each of these sectors (again using chart ratio analysis) also meet the primary goal of investing. 

This process of evaluation allows one to diversify their investment portfolio into the most promising investment alternatives – it then becomes a matter of asset allocation. 

Of primary importance is the fact that one must apply both basic technical analysis, in addition to ratio analysis, in order maximize safety and returns.  Obviously the net returns must exceed ones own personal inflation rate in order to be successful long term. 

“Your posts consistently encourage picking good juniors, which is fine & dandy, but I have not seen mention of specific companies.” Unlike most investors and market analysts, I have elected to research deeply into market performance of junior companies through the use of technical analysis.  I did so because it was once stated many years ago that TA could not be applied with any degree of certainty.  I was determined to see if that was true or not, and my research over the years IMO has caused me to feel confident that although there are slight differences, generally TA could be applied successfully.  One particular stock in the junior sector that I have done extensive research upon was Caledonia Mining – CALVF. 

In the process of doing my research I discovered that although there are hundreds of market indicators that one can use to do TA evaluation, each designed to provide confirmation to another, that there were 3 indicators (keeping it simple) was all one really needed in order to identify the correct investment alternatives.  The 3 indicators were the RSI, the MACD, and also the 8 and 21 EMA’s.  In a majority of cases, just the simple use of the 8/21 was enough to identify the primary trend.  You will note after reviewing hundreds of charts that the price tends to be “attracted toward” the 8 EMA. 

The reason I seldom discuss any particular investment alternative for consideration is because I have always felt it better to teach someone how to fish rather than simply providing the fish.  I am though in the process of designing a website where I do eventually intend to offer my final analysis on high probability investment alternatives for those who would rather just buy the fish.  I also intend to provide other investment guidance based on my understanding of global economics and politics in which I have spent more than 25 years doing research.  Hopefully it will be a website which will serve a useful purpose toward assisting others during these difficult times. 

“Do you have a list of companies that you feel fall into this category that you’re willing to share?”

Not at this time.

I hope this answered your inquiry … if not please do not hesitate to ask me to clarify further and if I can I shall do so.

Steve